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Do I need to place a comma before -but- in this sentence? I suppose not, because there is no independent clause after but. Or am I wrong? And which option is, stylistically, preferable?

According to the Explanatory Memorandum, the Act equips disputing parties with an auxiliary tool to refrain them from commencing legal proceedings on the merits of the case but instead helps them to negotiate an out-of-court settlement.

According to the Explanatory Memorandum, the Act equips disputing parties with an auxiliary tool to refrain them from commencing legal proceedings on the merits of the case but helps them to negotiate an out-of-court settlement instead.

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You are correct. No comma is required in either example. The second example, which I assume you have re-written, is stylistically superior to my native ear, but that is obviously just my opinion.

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